As Vietnam has become increasingly integrated into the global economy, it will become more susceptible to worldwide economic shifts, including the most recent possibility of an international recession; however, the influence will not as major as players deeply intertwined with major market motivators.
Global impact
“The US economy is one shock away from a recession,” US investment bank Lehman Brothers commented late yesterday, January 22.
Other experts share the same view, especially after the world’s stock markets plummeted yesterday.
In Europe, the DAX index dropped by 194.41 points (2.86%), the FTSE 100 dropped by 27.3 points (0.49%), and the CAC 40 fell by 48.67 points (1.03%).
In Asia, the Hang Seng Index fell 2,061.23 points (8.65%), Strait Times down by 72.85 points (2.5%) and Nikkei 225 dropped by 752.89 points (5.65%).
The main US indexes also witnessed sharp falls yesterday with the lowest decrease at 3.5%.
Lehman Brothers thinks that 40% of the US economy will fall into recession but the situation can be improved if the US FED takes strong preventative actions.
In the latest news, the FED decided to cut short-term deposit interest rates by 0.75% from 4.25% to 3.5%, the sharpest since September 11, 2001.
Vietnam may avoid drastic impacts
Experts say Vietnam may suffer from a global economic recession as global integration depends.
Vietnam’s stock market witnessed another lackluster day yesterday, as prices of all shares continued to fall, though listed companies announced satisfactory business results. Analysts say investors are fleeing the market because they fear a global recession may adversely impact Vietnam.
The VN Index fell to 807.74 points, the lowest since January 5, 2007.
However, the World Bank thinks the US’ problems will not influence Vietnam too much.
A recent report by the WB forecast that the global growth rate will be 3.3% in 2008, a bit lower than 2007’s 3.6%.
The report also said that if the US economy falls into a serious recession, this may further dampen growth in developing countries, including Vietnam.
The Asia Pacific region is thought to achieve a GDP growth rate of 9.8% in 2008, and 9.6% in 2009, while Vietnam is expected to see growth rates of 8.2% and 8.3% for 2008 and 2009, respectively.
International press agencies have also quoted economists who say that as Asian economies do not largely depend on the US, they will not suffer much from a US recession.
Japan, which is a main exporter to North America, will suffer most from the recession, while China will also see adverse effects as it is striving to increase exports to the US. (VNN)
Showing posts with label Export. Show all posts
Showing posts with label Export. Show all posts
Sunday, February 22, 2009
Vietnam eyes 55 bln-foreign investment in 5 years
Vietnam has targeted Foreign Direct Investment (FDI) of some 55 billion U.S. dollars, and realized FDI of 24-25 billion dollars between 2006 and 2010, according to a local investment agency on Tuesday.
Vietnam plans to lure fresh FDI of 41 billion dollars and 14 billion dollars worth of additional capital of operational foreign-invested projects in the five-year period, said the Foreign Investment Agency under Vietnam's Ministry of Planning and Investment.
Vietnam has targeted 5.5-6 billion dollars in realized FDI this year, up from 4.6 billion dollars last year. The country, though eyeing FDI of only 14-15 billion dollars in 2008, is much likely to attract FDI of more than 20 billion dollars this year like it did last year, said the department.
Foreign-invested enterprises in Vietnam are forecast to make total revenues of 38.8 billion dollars in 2008, up 16.5 percent against 2007. They are also predicted to gain export turnovers of 24.3 billion dollars this year, up 21.5 percent over last year.
Vietnam lured a record FDI of 20.3 billion dollars in 2007, bringing the total registered capital to 83 billion dollars with 8,590 operational FDI projects by the end of the year.
Vietnam plans to lure fresh FDI of 41 billion dollars and 14 billion dollars worth of additional capital of operational foreign-invested projects in the five-year period, said the Foreign Investment Agency under Vietnam's Ministry of Planning and Investment.
Vietnam has targeted 5.5-6 billion dollars in realized FDI this year, up from 4.6 billion dollars last year. The country, though eyeing FDI of only 14-15 billion dollars in 2008, is much likely to attract FDI of more than 20 billion dollars this year like it did last year, said the department.
Foreign-invested enterprises in Vietnam are forecast to make total revenues of 38.8 billion dollars in 2008, up 16.5 percent against 2007. They are also predicted to gain export turnovers of 24.3 billion dollars this year, up 21.5 percent over last year.
Vietnam lured a record FDI of 20.3 billion dollars in 2007, bringing the total registered capital to 83 billion dollars with 8,590 operational FDI projects by the end of the year.
PetroVietnam earnings gush to all-time high
The Viet Nam National Oil and Gas Group (PetroVietnam) reported all-time record revenues last year, partly fuelled by higher than expected earnings from services, and planned to secure a 15% growth rate this year in a press conference on January 21 in Ha Noi.
“PetroVietnam notched up total revenues of 213.4 trillion VND (13.3 billion USD) last year, up 18.4% from a year earlier, and it was the first time that the group reached revenues surpassing the significant milestone of 200 trillion VND,” said group deputy general director Le Minh Hong.
Of the total revenue, about 8.8 billion USD came from exporting 15.7 million tones of crude oil. This was a record figure on the bank of sky-rocking oil prices on the global market.
However, export volumes remained lower than earlier expected as its output merely remained at 15.9 million tones of crude. The group had earlier estimated it would exploit up to 17.5 million tonnes, according to Hong.
Hong also stressed PetroVietnam’s tremendous growth in revenue from services, which hit roughly 50 trillion VND (3.1 billion USD) last year, double the figure of the previous year. Services include technical services, finance, and insurance, among others.
The group signed 13 oil and gas exploitation contracts, three of which were for exploitation abroad, in 2007.
It paid nearly 86 trillion VND (5.3 billion USD) into the State Budget, a year-on-year increase of 7.4%, and accounting for around 30% of total State revenues, Hong said.
To reach 15% growth in revenue this year, PetroVietnam planned to exploit and yield some 16 million tones of crude oil from exploitation in Viet Nam and abroad.
PetroVietnam general director Tran Ngoc Canh admitted that crude oil yields abroad, at just over 100,000 tonnes last year, were lower than expectations.
To secure sustainable growth and energy security, the group would not only warrantee exploiting oil and gas effectively at home but also strive to expand exploitation in oil fields abroad with 2-3 contracts anticipated to be inked this year, Canh said.
The group has managed to land oil and gas exploitation deals in Malaysia , Indonesia , Azerbaijan , Kazakistan , Iran , and Venezuela , Canh said. (VNA)
“PetroVietnam notched up total revenues of 213.4 trillion VND (13.3 billion USD) last year, up 18.4% from a year earlier, and it was the first time that the group reached revenues surpassing the significant milestone of 200 trillion VND,” said group deputy general director Le Minh Hong.
Of the total revenue, about 8.8 billion USD came from exporting 15.7 million tones of crude oil. This was a record figure on the bank of sky-rocking oil prices on the global market.
However, export volumes remained lower than earlier expected as its output merely remained at 15.9 million tones of crude. The group had earlier estimated it would exploit up to 17.5 million tonnes, according to Hong.
Hong also stressed PetroVietnam’s tremendous growth in revenue from services, which hit roughly 50 trillion VND (3.1 billion USD) last year, double the figure of the previous year. Services include technical services, finance, and insurance, among others.
The group signed 13 oil and gas exploitation contracts, three of which were for exploitation abroad, in 2007.
It paid nearly 86 trillion VND (5.3 billion USD) into the State Budget, a year-on-year increase of 7.4%, and accounting for around 30% of total State revenues, Hong said.
To reach 15% growth in revenue this year, PetroVietnam planned to exploit and yield some 16 million tones of crude oil from exploitation in Viet Nam and abroad.
PetroVietnam general director Tran Ngoc Canh admitted that crude oil yields abroad, at just over 100,000 tonnes last year, were lower than expectations.
To secure sustainable growth and energy security, the group would not only warrantee exploiting oil and gas effectively at home but also strive to expand exploitation in oil fields abroad with 2-3 contracts anticipated to be inked this year, Canh said.
The group has managed to land oil and gas exploitation deals in Malaysia , Indonesia , Azerbaijan , Kazakistan , Iran , and Venezuela , Canh said. (VNA)
Viet Tien introduces high-fashion men’s line
Viet Tien Garment Export-Import Corporation (VTEC), the largest garment producer in Vietnam, has introduced two new luxury male fashion lines under Italian and American labels in HCMC.
New products under the Italian label San Sciaro, which are aimed at high-powered businessmen, include shirts, khaki trousers, T-shirts and suits. Products under the American label Manhattan include shirts, western trousers and suits. The Manhattan trademark is a part of Perry Ellis International and Perry Ellis International Europe.
According to VTEC, the San Sciaro label represents nobility, experience, power and prestige and will bring new, fashionable styles to Vietnamese businessmen.
Viet Tien expanded their franchise ownership in 2007 to include the Manhattan label, which is well known for high-quality office apparel.
The company will develop a full line of clothing under the Manhattan brand. Viet Tien will initially concentrate on designing dress shirts, which will be owned by Perry Ellis International and Perry Ellis International Europe. Perry Ellis is a leading designer, distributor and licensor of high-quality men’s and women’s apparel, accessories, and fragrances.
The agreement between the two fashion houses also covers knit and woven sport shirts, dress and casual pants, shorts, sport coats, suits, suit separates, sweaters, outerwear and accessories like neckties, hosiery, underwear and sleepwear. The line will be distributed by Viet Tien’s extensive network throughout Vietnam.
Viet Tien owns 12 enterprises and has stakes in 17 companies under the Vietnam Textile and Garment Group.
General director Nguyen Dinh Truong reported that last year VTEC earned VND2.7 billion in revenue, with US$263 million from exports. The corporation currently employs 21,600 people. (Saigon Times)
New products under the Italian label San Sciaro, which are aimed at high-powered businessmen, include shirts, khaki trousers, T-shirts and suits. Products under the American label Manhattan include shirts, western trousers and suits. The Manhattan trademark is a part of Perry Ellis International and Perry Ellis International Europe.
According to VTEC, the San Sciaro label represents nobility, experience, power and prestige and will bring new, fashionable styles to Vietnamese businessmen.
Viet Tien expanded their franchise ownership in 2007 to include the Manhattan label, which is well known for high-quality office apparel.
The company will develop a full line of clothing under the Manhattan brand. Viet Tien will initially concentrate on designing dress shirts, which will be owned by Perry Ellis International and Perry Ellis International Europe. Perry Ellis is a leading designer, distributor and licensor of high-quality men’s and women’s apparel, accessories, and fragrances.
The agreement between the two fashion houses also covers knit and woven sport shirts, dress and casual pants, shorts, sport coats, suits, suit separates, sweaters, outerwear and accessories like neckties, hosiery, underwear and sleepwear. The line will be distributed by Viet Tien’s extensive network throughout Vietnam.
Viet Tien owns 12 enterprises and has stakes in 17 companies under the Vietnam Textile and Garment Group.
General director Nguyen Dinh Truong reported that last year VTEC earned VND2.7 billion in revenue, with US$263 million from exports. The corporation currently employs 21,600 people. (Saigon Times)
Rice export targets lifted as India, Thailand cut back
The government has set a target of 4.5mil tonnes of rice exports this year, which is expected to bring in US$1.7bil in revenue, an increase over last year of $300mil.
The target was set out by the Ministry of Agriculture and Rural Development at a meeting last Friday in Hanoi.
Truong Thanh Phong, chairman of the Viet Nam Food Association (VFA), said rice exports were forecast to be favourable this year because of strong demand and a lower supply on the international market.
He said this year India, which usually exports about 3mil tonnes annually, would stop exporting rice to ensure national food security.
China is expected to import more rice and Thailand plans to cut its export volume.
"Export rice prices will remain high, benefiting both enterprises and farmers," he added.
Vietnam exported a total of 4.5mil tonnes of rice last year, earning $1.4bil in revenue.
The export rice price stood at $309 a tonne, up $41 a tonne over the previous year.
Local rice exporters said that rice prices offered by foreign importers hade risen by $20 a tonne over the past week to $385 a tonne, and could climb to $400 a tonne.
On the local market, rice prices were VND4,000 a kilogram, the minimum price set by the VFA for the year, according to Phong.
Phong warned that rice exporting businesses should be cautious and wait for the highest possible price before signing contracts.
"Rice prices are on an upward trend so we recommend that farmers not sell rice immediately unless they really need the money," he said.
Deputy Minister of Trade and Industry Nguyen Thanh Bien said that the 2008 rice export volume of 4.5mil tonnes scheduled for connacts include 700,000 tonnes in the first quarter, 1.5mil tonnes in the second quarter, 1.5mil in the third quarter and 800,000 tonnes in the last quarter.
Contract problems
Despite favourable conditions for rice exports in 2007, rice export businesses said that profits were declining compared with previous years, with some companies only breaking even or suffering a loss.
The director of a rice export company, who asked to remain anonymous, said that many rice contracts at the end of last year were not honoured because local rice prices were higher than the price quoted in the contracts.
He said the contract-based allocation of rice quotas was unfair and lacked transparency.
"When the allocated quota of rice export volume reaches us, export prices on the local market have already climbed to VND4,200 a kilo, while the price contracted is merely VND3,800 a kilo," he explained, adding that losses were inevitable.
Many companies have complained that they received information about export quotas two to three months after contracts had been signed.
The best time to buy rice, they said, would be when a business was able to decide whether it can make a profit or a loss.
Another problem is that local rice exporters can take out bank loans only if they have contracts that state the quotas.
The allocated time for rice shipment delivery was also too long, exporters said.
Unhealthy competition among rice exporters in securing rice contracts by offering a low bid is also damaging both businesses and farmers, according to industry insiders.
"If businesses scramble to win rice contracts at a competitively low price, they will suffer if export rice prices should later soar on the local market," said Pham Van Bay, director of An Giang Agricultural Products and Food-stuff Co. (VNS)
The target was set out by the Ministry of Agriculture and Rural Development at a meeting last Friday in Hanoi.
Truong Thanh Phong, chairman of the Viet Nam Food Association (VFA), said rice exports were forecast to be favourable this year because of strong demand and a lower supply on the international market.
He said this year India, which usually exports about 3mil tonnes annually, would stop exporting rice to ensure national food security.
China is expected to import more rice and Thailand plans to cut its export volume.
"Export rice prices will remain high, benefiting both enterprises and farmers," he added.
Vietnam exported a total of 4.5mil tonnes of rice last year, earning $1.4bil in revenue.
The export rice price stood at $309 a tonne, up $41 a tonne over the previous year.
Local rice exporters said that rice prices offered by foreign importers hade risen by $20 a tonne over the past week to $385 a tonne, and could climb to $400 a tonne.
On the local market, rice prices were VND4,000 a kilogram, the minimum price set by the VFA for the year, according to Phong.
Phong warned that rice exporting businesses should be cautious and wait for the highest possible price before signing contracts.
"Rice prices are on an upward trend so we recommend that farmers not sell rice immediately unless they really need the money," he said.
Deputy Minister of Trade and Industry Nguyen Thanh Bien said that the 2008 rice export volume of 4.5mil tonnes scheduled for connacts include 700,000 tonnes in the first quarter, 1.5mil tonnes in the second quarter, 1.5mil in the third quarter and 800,000 tonnes in the last quarter.
Contract problems
Despite favourable conditions for rice exports in 2007, rice export businesses said that profits were declining compared with previous years, with some companies only breaking even or suffering a loss.
The director of a rice export company, who asked to remain anonymous, said that many rice contracts at the end of last year were not honoured because local rice prices were higher than the price quoted in the contracts.
He said the contract-based allocation of rice quotas was unfair and lacked transparency.
"When the allocated quota of rice export volume reaches us, export prices on the local market have already climbed to VND4,200 a kilo, while the price contracted is merely VND3,800 a kilo," he explained, adding that losses were inevitable.
Many companies have complained that they received information about export quotas two to three months after contracts had been signed.
The best time to buy rice, they said, would be when a business was able to decide whether it can make a profit or a loss.
Another problem is that local rice exporters can take out bank loans only if they have contracts that state the quotas.
The allocated time for rice shipment delivery was also too long, exporters said.
Unhealthy competition among rice exporters in securing rice contracts by offering a low bid is also damaging both businesses and farmers, according to industry insiders.
"If businesses scramble to win rice contracts at a competitively low price, they will suffer if export rice prices should later soar on the local market," said Pham Van Bay, director of An Giang Agricultural Products and Food-stuff Co. (VNS)
EU gives access to 25 more seafood exporters
The European Commission (EC) has recognized 25 more Vietnamese seafood companies as meeting requirements to export products to the EU. The newly recognized seafood companies will be able to export to the EU as of January 31, 2008.
With the new decision, the total number of Vietnamese seafood companies eligible to export to the EU has reached 269.
The 25 newly recognized companies include two canned food processors and 23 frozen product exporters.
Problems with food hygiene and antibiotic residue were the main reasons why the EU had previously rejected seafood imports from Vietnam.
In 2007, the EC’s Health and Consumer Protection Directorate sent two inspection delegations to Vietnam to examine the implementation of the program on controlling toxic chemical substances in aquaculture (January 2007), and examine the control over seafood farming and processing sanitation (September 2007).
The EC’s inspection tours led to the commission’s decision that actions taken by the Vietnamese side to ensure the safety and sanitation of seafood products have made Vietnam’s seafood eligible for export to the EU.
With more than 500mil consumers, the EU remains one of Vietnam’s biggest seafood markets, which consumes 39% of total exports. In 2007, Vietnam exported 274,700 tons of seafood to the EU, bringing in $912mil, an increase of 29% over the previous year.
Commercial affair divisions under Vietnamese embassies in EU countries have forecast that the EU’s consumption of seafood products will increase by 5-8% this year, which will make the seafood price increase by 5-7%. Higher demand will bring more opportunities to Vietnamese exporters. However, analysts warn that Vietnam will have to compete with North European countries, Russia, Ecuador, China, Thailand, India and Canada for EU market share.
While the supply of shrimp to other parts of the world has been decreasing, the supply to the EU did not see any considerable decrease. Vietnam’s frozen shrimp products now hold some 4% of the EU market share.
It is expected that Vietnam’s seafood export turnover will reach $1bil in 2008, and the EU will remain Vietnam’s biggest market.
The EU is also a part of the world that imports most of the global supply of seafood. In 2006, the 25 members of the EU consumed $38.9bil worth of seafood, an increase of 10.7% compared to 2005. (VNN)
With the new decision, the total number of Vietnamese seafood companies eligible to export to the EU has reached 269.
The 25 newly recognized companies include two canned food processors and 23 frozen product exporters.
Problems with food hygiene and antibiotic residue were the main reasons why the EU had previously rejected seafood imports from Vietnam.
In 2007, the EC’s Health and Consumer Protection Directorate sent two inspection delegations to Vietnam to examine the implementation of the program on controlling toxic chemical substances in aquaculture (January 2007), and examine the control over seafood farming and processing sanitation (September 2007).
The EC’s inspection tours led to the commission’s decision that actions taken by the Vietnamese side to ensure the safety and sanitation of seafood products have made Vietnam’s seafood eligible for export to the EU.
With more than 500mil consumers, the EU remains one of Vietnam’s biggest seafood markets, which consumes 39% of total exports. In 2007, Vietnam exported 274,700 tons of seafood to the EU, bringing in $912mil, an increase of 29% over the previous year.
Commercial affair divisions under Vietnamese embassies in EU countries have forecast that the EU’s consumption of seafood products will increase by 5-8% this year, which will make the seafood price increase by 5-7%. Higher demand will bring more opportunities to Vietnamese exporters. However, analysts warn that Vietnam will have to compete with North European countries, Russia, Ecuador, China, Thailand, India and Canada for EU market share.
While the supply of shrimp to other parts of the world has been decreasing, the supply to the EU did not see any considerable decrease. Vietnam’s frozen shrimp products now hold some 4% of the EU market share.
It is expected that Vietnam’s seafood export turnover will reach $1bil in 2008, and the EU will remain Vietnam’s biggest market.
The EU is also a part of the world that imports most of the global supply of seafood. In 2006, the 25 members of the EU consumed $38.9bil worth of seafood, an increase of 10.7% compared to 2005. (VNN)
Economic, Infrastructure
A Vietnamese software processor, NCS Solutions, has established NCS Japan, its overseas subsidiary, to design, manufacture and trade software in Japan.
This is a wholly Vietnamese owned company, based in Tokyo. Its 10 year plan is to specialize in designing, producing and trading software, digital content products, train software engineers and provide online value added consulting services and IT solutions. The firm aims to earn revenue of US$2 million this year.
NSC Japan has legal capital of $200,000 and has 20 employees. This is the second Vietnamese software company in Japan; the other is FPT Software Japan, a subsidiary of FPT Group.
It is said that the appearance of Vietnam’s second software company in Japan is a good sign because it will contribute to realizing the goal of $800 million in revenue from software exports. (VNE)
This is a wholly Vietnamese owned company, based in Tokyo. Its 10 year plan is to specialize in designing, producing and trading software, digital content products, train software engineers and provide online value added consulting services and IT solutions. The firm aims to earn revenue of US$2 million this year.
NSC Japan has legal capital of $200,000 and has 20 employees. This is the second Vietnamese software company in Japan; the other is FPT Software Japan, a subsidiary of FPT Group.
It is said that the appearance of Vietnam’s second software company in Japan is a good sign because it will contribute to realizing the goal of $800 million in revenue from software exports. (VNE)
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